Housing as a Process, Not a Product
Market Development Forum Nepal (MDFN)
November 4-5, 2015
• Vision: A world where everyone has a decent place to live.
• Founded 1976
• 70 national organizations around the world
Global Level Sector Impact
Center for Innovation in Shelter
and Finance (CISF)
• Product development
• Housing support services
modeling and design
• Testing and introduction of
housing construction
technologies
• Planning and
implementation of pilot
projects
• Institutional support &
Capacity Building
MicroBuild
• Social investment fund
• Lends capital to local financial
service providers
• Expanding opportunities for
low-income families to obtain
microfinance products to
improve their homes
• MicroBuild Fund has approved
US$45.37 million across 31
institutions in 20 countries (As
of June 2015)
Haiti Context
•
•
•
•
Poorest country in the Americas and one of the poorest in the world
77% of the population living below the poverty line (both $1 & $2)
Disparity and inequity of society and income
Vulnerabilities include hurricanes, tropical storms, torrential rains, floods and
earthquakes
Housing Sector
• January 2010 earthquake at
7.0M, primarily an urban disaster
• 1.5 million people needed
emergency shelter.
• Death toll 100k – 160k
• Nearly 190k houses were
damaged
• 105k were completely destroyed.
• 80% of house owners either built
their house themselves or had
them built; 55% urban renters.
• Blockages in all stages of housing
value chain, especially for low
income families, to build back
better
Haiti Housing Value Chain
Regulatory Environment
Construction
Financing
Land and
Tenure
Building
materials
Community
Development
Design and
building
skills/services
Essential
services
(WATSAN,
power, etc.)
Regulatory Environment
Land and Tenure
Financing
Construction & Housing
Government
capacity was
significantly
affected. Today
building code
enforcement is a
challenge.
Land tenure
remains a
roadblock for
formal
reconstruction by
developers, but
not self-builders.
Poverty levels and
lack of land
tenure
significantly
restrict finance
for housing.
Expensive and
many vulnerability
considerations.
Lack of skilled
technical
assistance for selfbuilders.
7
Haiti Response & the Housing Market
• Product driven solutions / response – led by INGOs
• Large private sector firms became material importers for INGOs
• Local smaller firms responded to the ‘self-recovery’ demand through informal
/ MSME markets
• Housing as a process, not a product
• Large tenders were too big ($) / complex requirements (donors) excluded
small medium sized businesses
• INGOs in direct competition with the market for major infrastructure
• Demand significantly increased the cost of materials; and created competition
for limited supply of materials
Nepal Damage/Losses (in billion NPR) USD 3.3b – Housing
Nepal
Private
Investment
&
Housing
Subsidy
$
Self Recovery
&
+
Homeowner
Driven Response
Demand
=
Build Back
Better / Safer
Role of Market
Vs
 Based Actors?
Timing and
affordability
Goal
Role of the
Market Based
Facilitators?
Thoughts about Market
“Define actors
broadly” “New dynamic between
market Actors and
NGOs / Donors”
“Identify specific scope
“Co-creation process
for HVC”
takes time”
e.g. geography (rural vs urban) /
district; target audience;
constraint…
“Demonstrate the
market size /
opportunity”
“Get a success story to
demonstrate partnership”
Question: What's your role as a market facilitator?
• How do we bring the private sector into the response as more than just a material
supplier?
• How to leverage the homeowner driven approach (demand) with safer
construction material and technical support, through the market (supply)?
Demonstrate how they add value.
• How to safe guard (vulnerable) homeowners from the negative market impacts
(e.g. price, material quality, unskilled labor)?
• How to build the capacity of MSMEs firms to participate in reconstruction
opportunities?
Housing as a Process, Not a Product
Mike Meaney, Chief Operating Officer, Haiti
[email protected]
www.habitat.org
“Incentives based
upon commercial
and sustainable
basis”
“research the broad
range of technologies
used to rebuild”
“Avoid over
subsidizing”
“Avoid market
distortions”
Facilitating Market Based Solutions to
Housing Value Chain Constrains
1. Build and train the assessment team
2. Value Chain Analysis & Mapping
3. Identification of market actors
4. Focus group discussions with identified market actors
5. Exposure visits with market actors
6. Understand relations, constraints and potential solutions
7. Identify example MBS to address value chain constraints
8. “Invitation for Applications”
9. Co-creation process
10. Pilot and evaluate for scale up